KLSE: SCGM (7247)       SCGM BHD Main : Industrial Products
Last Price Today's Change   Day's Range   Trading Volume
4.05   -0.04 (0.98%)  4.05 - 4.10  94,000
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Ann. Date Ex Date Payment Date Type Subject Amount View
26-Aug-2008 26-Sep-2008 10-Oct-2008 DIVIDEND First and Final Dividend RM 0.025 Dividend Detail
25-Aug-2009 28-Sep-2009 09-Oct-2009 DIVIDEND First and Final Dividend RM 0.025 Dividend Detail
27-Aug-2010 28-Sep-2010 11-Oct-2010 DIVIDEND First and Final Dividend RM 0.03 Dividend Detail
05-Sep-2011 28-Sep-2011 14-Oct-2011 DIVIDEND First and Final Dividend RM 0.03 Dividend Detail
29-Aug-2012 03-Oct-2012 19-Oct-2012 DIVIDEND First and Final Dividend RM 0.03 Dividend Detail
29-Aug-2013 02-Oct-2013 16-Oct-2013 DIVIDEND First and Final Dividend RM 0.05 Dividend Detail
23-Jun-2014 03-Jul-2014 18-Jul-2014 DIVIDEND First Interim Dividend RM 0.1 Dividend Detail
12-Sep-2014 29-Sep-2014 10-Oct-2014 DIVIDEND First Interim Dividend RM 0.02 Dividend Detail
18-Dec-2014 02-Jan-2015 21-Jan-2015 DIVIDEND Second interim dividend RM 0.05 Dividend Detail
18-Mar-2015 01-Apr-2015 17-Apr-2015 DIVIDEND Interim Dividend RM 0.02 Dividend Detail
17-Jun-2015 30-Jun-2015 15-Jul-2015 DIVIDEND First Interim Dividend RM 0.0500 Dividend Detail
24-Jul-2015 26-Aug-2015 18-Sep-2015 DIVIDEND Final Dividend RM 0.0400 Dividend Detail
19-Aug-2015 01-Sep-2015 03-Sep-2015 BONUS_ISSUE Bonus Issue 1 : 2 Dividend Detail
09-Dec-2015 22-Dec-2015 13-Jan-2016 DIVIDEND Second interim dividend RM 0.0300 Dividend Detail
14-Mar-2016 25-Mar-2016 12-Apr-2016 DIVIDEND Interim Dividend RM 0.0200 Dividend Detail
23-Jun-2016 11-Jul-2016 27-Jul-2016 DIVIDEND Interim Dividend RM 0.02 Dividend Detail
02-Sep-2016 20-Sep-2016 07-Oct-2016 DIVIDEND First Interim Dividend RM 0.02 Dividend Detail
08-Dec-2016 22-Dec-2016 13-Jan-2017 DIVIDEND Interim Dividend RM 0.02 Dividend Detail
15-Mar-2017 29-Mar-2017 14-Apr-2017 DIVIDEND Interim Dividend RM 0.02 Dividend Detail
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  6 people like this.
bsngpg EPS will be diluted after PP. Basing on the fixed DPO, net dividend will be reduced too.
11/10/2016 09:47
stormspike Agree with bsngpg, the EPS will take a hit because earnings now divided by more number of shares. DPS takes a hit too. ROE will take a hit because the equity portion has enlarged. This PP has the reverse effect of share buyback. In the short term, I view this PP thing as a negative thing. Over the long term, I believe SCGM will put the equity raised to good use, generating better return over time. Likely to happen over a long period of time because it takes time to build factories to produce higher output. With regards to the PP, we are talking about a short time frame, perhaps weeks, or months. i will wait it out, till all the dust settles, the PP completed then I come in again. The factories won't be ready yet, anyway.
11/10/2016 22:25
char1234 The final price of d share that will b sold to the new investor ?
12/10/2016 10:10
stormspike AirAsia had a Private Placement earlier on this year. Despite the dilution, the PP was well accepted by the shareholders because it was the founder himself injecting fresh cash into the company. The final price of the new share issuance should come at a discount to the present traded price. Or otherwise it doesn't make sense for the new investor to buy a stake of the company at a price higher than the market rate. How much they trade will determine the floor of SCGM.
12/10/2016 14:16
char1234 Time to move on ......this counter wilol be valued less than its todays price...SAD..
12/10/2016 23:38
sosfinance In theory, PP is just a partial IPO. If we take the emotion out of the equation, the good or bad of PP depends on two things: (1) at what PE is the PP is issued (2) what is the ROE of this PP. The rest is up to investors perception. If I issue a PP at PE of 32x, and invest the PP into a project that has a payback time of say 4x, you think the PP is good or bad of the company, at least in theory? I hope that explain the theory/technical side.
13/10/2016 09:15
dfsbipohsch SCGM (Not Rated). SCGM has been consolidating over the past one month, after staging a strong rebound from its sell-down in August. Yesterday, the stock rose 8.0 sen (2.49%) to stage a breakout (above RM3.28 level) from its sideways consolidation pattern to close at RM3.29 on higher trading volume observed. Should the stock manage to hold above the RM3.30 level, the stock could look to gear higher towards RM3.38 (R1) and possibly the target objective of RM3.60 (R2) in the near-to-mid term. Failure to settle above the RM3.30 level soon could result in the stock regressing towards RM3.20 (S1) and possibly further south at RM3.00 (S2).Thus, interested investors could look to opt out of the stock if the S1 level is broken to prevent further losses from the share price retracement.
Source: Kenanga Research - 14 Oct 2016
14/10/2016 17:52
char1234 analyst ........i hv hold this stk for 3 weeks. I know what they r up to...
15/10/2016 00:22
char1234 see 345 in just one minute
01/11/2016 16:02
char1234 4 wk high...
01/11/2016 16:02
char1234 Write a comment..screw did not sell....back to old price
01/11/2016 17:18
dfsbipohsch SCGM Berhad - 1H17 Within Expectation –

Source: Kenanga Research - 9 Dec 2016

1H17 core earnings of RM10.7m was within our expectation (46%). A second interim dividend of 2.0 sen is also on track (50%). Maintain FY17-18E of RM23.2-30.1m. The company expects to grow capacity by 44% in FY17 and by 2.5x to 62.6k MT/year by FY19, while we estimate capex of RM47-43m in FY17-18E. Maintain OUTPERFORM and TP of RM3.81 on decent total returns of 17%.
1H17 core net profit of RM10.7m is within our expectation, achieving 46% of our FY17E estimate, while consensus estimates are lacking. Second interim dividend of 2.0 sen was declared, bringing 1H17 dividend to 4.0 sen (50%). This is well on track to meet our FY17E dividend of 8.0 sen (2.4% yield).
Result highlights. QoQ, CNP was up by 3% on the back of positive top line growth (11%) mainly from local as well as export demand, with local sales driven by higher orders of lunch boxes and disposable cups. However, this was muted by decreased interest income and s slightly higher tax rate. YoY-Ytd, CNP saw a significant improvement of 23%, mostly on positive top line growth due to similar reasons mentioned above coupled with a lower effective tax rates of 15.6% (from 17.8%) due to the utilisation of capital allowances and reinvestment allowances.
Outlook. The company intends to increase its capacity by 44% to 36.0k MT/year by Dec 2016 as they will be renting a 20k square foot (sq ft) facility in Kulai to house 2 new extrusion machines which we have accounted for in our estimates. Longer-term expansion plans include a new plant targeted for completion in FY19, which will boost production capacity by 2.5x to 62.6k MT/year. All in, the Group expects to spend RM136.8m for its capex plans, while we expect capex allocation of RM47-43m in FY17-18E. Note that we make no changes to our FY17-18E of RM23.2-30.1m.
Maintain OUTPERFORM with TP of RM3.81 based on a Fwd. PER of 19.9x applied to CY17E EPS of 19.2 sen. Our Fwd. PER of 19.9x is based on a slight discount to SLP’s Fwd. PER of 21.5x with a potential total returns of 17%. We continue to maintain our OUTPERFORM call on SCGM for its: (i) strong FY17-18E earnings growth of 15-30%, (ii) medium- and long- term extrusion capacity expansion, (iii) new F&B container market opening up on state-wide polystyrene container ban, and (iv) being a beneficiary of higher USD, with USD-denominated sales and RM-denominated costs.
Risks to our call include; (i) higher-than-expected resin cost, (ii) weaker product demand from overseas (47% of sales), (iii) foreign currency risk from strengthening Ringgit, and (iv) new entrants/competition biting into its market share
Source: Kenanga Research - 9 Dec 2016
09/12/2016 13:00
dfsbipohsch SCGM Bhd - Another Solid Quarter

Source: PublicInvest Research - 9 Dec 2016

SCGM’s 1HFY17 results were relatively strong and came in within our and consensus earnings forecasts, making up 46% and 43% of full-year estimates respectively. We expect to see better results in the 2HFY17, banking on more orders in the pipeline, driven by higher demand for its biodegradable lunch boxes ahead of the regulatory bans on polystyrene products effective next year. Meanwhile, a lower DPS of 2sen was declared for the quarter (vs 2QFY16: 2.7sen). Pending further management guidance from the analyst briefing next week, we maintain our Outperform call with an unchanged TP of RM4.00 based on FY18 PER of 21x.
• Revenue jumped 23.0% YoY. The Group registered an encouraging growth of 23% YoY to RM42m in 2QFY17 on the back of better plastic packaging product sales from local demand.
• Core earnings (QoQ: +10.6%, YoY: +30.0%). Stripping out the foreign exchange gain, the Group’s core earnings jumped 30.0% YoY to RM5.2m in 2QFY17, mainly driven by improved sales from plastic packaging products. Gross earnings margin improved from 14% to 15% meanwhile, though operating expenses rose 22% YoY attributed to an increase in cost of production, staff cost, depreciation of property, plant and equipment, electricity cost and packaging materials.
• Expanding capacity. In anticipation of the regulatory bans on polystyrene foam packaging in several states next year, there has been a notable pick-up in demand for substitute products such as lunch boxes, disposable hygiene cups and other related products. To meet these increasing orders, management has started operations at the 20,000 sq ft rented factory in Kulai to increase production in the interim. Currently, 1 extrusion machine and 1 thermo-forming machine are being operated in the rented space. Management plans to house an additional extrusion machine and 3 thermo-forming machines in the short-term.
• Maintain Outperform call. The recent recovery in oil prices could affect its resin cost, which is mainly derived from petrochemicals. Nevertheless, we believe the company can pass on additional input costs to customers given its strong market share (more than 60%) in the industry. We like the company for its i) recession-proof business, ii) substantial capacity expansion in the pipeline
Source: PublicInvest Research - 9 Dec 2016
09/12/2016 13:02
dfsbipohsch • Highlight
SCGM banks on resilient demand for its products
This article first appeared in The Edge Financial Daily, on December 19, 2016.

KUALA LUMPUR: Amid a challenging local and global economic landscape, thermos-vacuum form plastic packaging manufacturer SCGM Bhd sees itself as a defensive business as demand for its products stay resilient.
“Demand [for plastic packaging] is still very high,” according to the group’s executive chairman Datuk Seri Lee Hock Seng.
In fact, SCGM has decided to temporarily rent a factory to increase production to 36 million kg per year before its second factory is completed by December 2018.
The new factory is expected to boost capacity to 62.6 million kg per year.
Currently, SCGM’s production capacity is 25 million kg per year.
“Demand for our product is inelastic; people need it when times are good. Even when the economy is bad, people ‘dabao’ (Cantonese colloquial for takeaway food) more, which requires packaging,” he told The Edge Financial Daily in a recent interview.
SCGM makes plastic packaging for the food and beverage sector which contributes up to 75% of its revenue. Its products for the electronic and medical sectors make up 10% and 15% of revenue respectively.
So far, Lee said, about 40% of the group’s production is meant for export, while the remaining 60% is for the domestic market.
“It was a 50:50 ratio before this, but the export market grew in [a] single-digit percentage, while the domestic market has been enjoying double-digit growth lately, thanks to [the] rising trend of biodegradable products,” he said.
For the second quarter ended Oct 31, 2016 (2QFY17), Lee said SCGM added six new international customers and 34 new local customers.
It is worth noting that by June next year, five states in Peninsular Malaysia will be banning the use of polystyrene containers and plastic bags. The five are Penang, Melaka, Johor, Selangor and Perak.
In Kuala Lumpur, it was reported that by year end, Bukit Bintang will be the second area to be declared polystyrene-free as Kuala Lumpur City Hall pursues its green city initiative.
Dataran Merdeka was declared a prohibited area for polystyrene food containers in July last year.
SCGM’s Lee said the campaign to increase the usage of biodegradable products is very effective since it was initiated at the governmental level.
“Our clientele has been increasing after the ban on polystyrene packaging in some key states here, and locally, we are the biggest biodegradable packaging manufacturer,” he said.
For 2QFY17, SCGM registered RM2 million sales for biodegradable lunchboxes, a 42% growth from RM1.4 million in 1QFY17. Revenue for the quarter stood at RM42.02 million.
For the first half of FY17, the group recorded a net profit of RM10.94 million, a 13% growth from RM9.68 million last year, while revenue grew 25.31% to RM79.89 million, from RM63.76 million previously.
SCGM’s management has a policy to distribute 40% of its annual earnings as dividends to shareholders.
As at Aug 25 this year, Lee and his three younger brothers collectively owned a 48.26% stake in SCGM. SCGM are the initials of the brothers’ names.
Moving forward, Lee expects the group’s turnover will continue to reach a new record high in FY17 by registering double-digit growth.
“Our backlog [for orders] now stands at about two months, meaning if a customer orders now, it will take them two months before delivery. It is expected to go higher and we cannot afford to miss this market opportunity because we need this volume to feed our new factory by 2018,” he explained.
Therefore, Lee said SCGM’s management will consider renting additional factory space should the backlog reach 2.5 months.
However, it is not all rose petals and sunshine for SCGM. Effective tomorrow, the group will increase its selling prices to customers by 10% to offset the recent spike in resin cost, a raw material to produce plastic packaging products, which makes up more than half of total production cost.
“This is to sustain our margin and it is our first revision in two years. Usually, we prefer not to revise unless our overall costs increase by more than 10%,” Lee explained.
Currently, there are only three research houses covering SCGM, namely PublicInvest Research (outperform), Kenanga Research (outperform) and Inter-Pacific Securities Research (neutral). Their target prices for SCGM range from RM3.56 to RM4.
Last Friday, SCGM closed one sen or 0.3% higher at RM3.38, with a market capitalisation of RM446.16 million.
It was last traded at a forward price-earnings ratio of 20.74 times. Year to date, the counter has gained by 6.62%.
19/12/2016 10:19
soohau78 so quiet...
07/02/2017 07:17
dfsbipohsch Thursday, 9 February 2017
SCGM set to build new facility in Kulai
KUALA LUMPUR: SCGM Bhd, a thermoform food packaging manufacturer, is set to commence construction of its new RM54mil manufacturing facility in Kulai, Johor.
The facility, spread over 7.8ha is located about 5km from the company’s existing premises, and scheduled for completion in December 2018.
In a statement yesterday, managing director Datuk Seri Lee Hock Chai said the enlarged production floor space and new machinery at the facility, would bump up the group’s extrusion capacity by 73% to 62.6 million kg per year from the current 36 million.
“As a major producer of thermoform packaging for food and beverages, SCGM has been among the key beneficiaries of higher demand in the past year with the regulatory ban on polystyrene products in Malaysia.

“We foresee a second wave of uptrend in demand along with public awareness on food safety and environmental sustainability, not only in the local market but also increasingly in the Asia-Pacific region,” he added.
Lee is optimistic that the larger production capacity accorded by the new factory would place SCGM on a steady growth path to meet current and future demand.
The group has earmarked RM125mil in total capital expenditure for the new factory, encompassing land acquisition, building construction and purchase of new machinery. – Bernama

Read more at http://www.thestar.com.my/business/business-news/2017/02/09/scgm-set-to-build-new-facility-in-kulai/#tizccdH3w54H4u5a.99
09/02/2017 12:09
stockmanmy SCGM will do well

almost monopoly is a growing market.

their machines at full capacity still demand more than supply.

SCGM choose their customers, not customer choose suppliers.
09/02/2017 14:26
dfsbipohsch SCGM - Construction of New Plant Set To Begin
Author: PublicInvest | Publish date: Fri, 10 Feb 2017, 09:45 AM

SCGM announced that it has awarded RM54m construction contract for the new manufacturing plant in Kulai. The new plant, which is expected to be completed by end-2018, will bump up the Group’s extrusion capacity by 73% to 62.6m kg/year from the current level of 36m kg/year. Once the new capacity kicks in, it is expected to lift the company’s annual product sales by more than 50%. We maintain Outperform call with an unchanged TP of RM4.00.

• Details about the new plant. Management has allocated RM125m for the new plant, which will further increase its extrusion capacity from 36m kg/year to 62.6m kg/year. The new plant is located on a 7.8-ha land (19.2 acres) in Kulai, which is 5km away from the Group’s existing premises. Construction activity is expected to be completed by end-2018. About RM11.8m has been invested for the land acquisition while the construction cost will be about RM54m. The remainder will go to the new machinery. The new plant will consist of a 3-storey office, a 2-storey factory, a 2-storey warehouse as well as ancillary building such as hostel and canteen. The new plant will accommodate i) 6 extrusion machines, ii) 10 thermo-forming machines and iii) 1 cup manufacturing machine. All these new machines are expected to arrive by July-Aug 2018.

• Funding. The RM125m capex will be funded through internally generated funds, borrowings
and proceeds from ongoing private placement. The Group currently has a net cash of RM7.1m while the ongoing private placement will raise about RM46m. We believe the remainder will derive from the external borrowings and future earnings.

• Strong pick-up in biodegradable products. In view of the regulatory bans on polystyrene foam packaging in several states effective this year, there is increasingly strong demand for the biodegradable lunch boxes and disposal hygiene cups. During the 1HFY17, the Group’s cup sales totaled RM3.4m (2QFY17: +42.8% QoQ), mainly led by the new Australia’s regulation on wine glass ban.

• Foreign labour woes. The Group has a total of 480 workers, in which foreign workers made up for 63%. The ban on hiring foreign labour last year has prompted the company to hire more local workers.

• Running at high utilization rate. The company’s current production capacity stands at 36m kg/year. The current production is running at around 33-34m kg/year, a high capacity utilization rate of 92%-94%.

Outperform call with an unchanged TP of RM4.00.

Source: PublicInvest Research - 10 Feb 2017
10/02/2017 10:31
bsngpg Great expansion plan by one of my "Huan Choo"(sweet potato) counter.
10/02/2017 11:45
richduck whats happening today..
15/02/2017 11:28
Joblessrich going up is good
15/02/2017 17:40
Joblessrich with so many states banned styrofoam boxes and cups. The biodegradable boxes must be selling very well.
Revenue will be up, profit will eventually be up. Maybe not so much in the December 2016 quarter, but next quarter will be damn good.

Buy buy buy ...
22/02/2017 23:50
njue76 Profit double next quarter..will go 4.00
14/03/2017 22:35
Mgician so excited today ~~~ good
15/03/2017 11:07
Joblessrich Made the right decision to buy buy buy .... Now, I am laughing

Sifus, how high will it go ?
15/03/2017 12:01
gogogogo gogogo
15/03/2017 12:15
pputeh QR should be out soon. This week or next. Share price has started to move. Hoping for better performance
15/03/2017 13:04
Patrick13 Good result out. EPS 5.29. Dividend declared 2 cent per share.
15/03/2017 17:52
Jianjianfox Result ok la... not.much surprise... resin and labour cost go up.. but revenue increase significantly...Will cont to.hold
15/03/2017 18:23
Meng Current quarterly result doesn't give any surprise is reasonable. If you trace back the news few months before, you will find the clue that this quarterly result will not get you any surprise.

What make the investors excited to the company is that the demand of the lunch box getting higher recently, the sales is constantly increase over the time. But let's look back what happened in the few months back:

At the early of 2016, the production lines almost reach the maximum capacity, the company has decided to expand the business by constructing another factor to increase the capacity to 62 million kg per year which is 1.5 time increase from the existing capacity 25 million kg per year.

By the time the company looking for a place for the new factory, the company also decide to temporary rent a place near by, house the machine to increase the production to meet the demand before the new factory take place. The rented 20000 sqft factory was capable to increase the production capacity to 36 million kg per year which is 44% increase from existing capacity. By the time December 2016, the company mention that there are 1 extrusion machine and 1 thermo-forming machine operated in the rental factory, and the company plan to house 1 additional extrucsion machine and 3 thermo-forming machines in short term, meaning that in Dec, the rental factory is only have 1/3 of it's full capacity. In Feb 2017, the company mention that the production capacity already reach 33 million kg per year, which is 92% of the total capacity (36 million kg per year).

The latest report is for the quarter between Nov 16 and Jan 17, which the rental factory have yet been fully utilized. For the next quarterly report, we shall see the true result that the company can perform with the current facilities.

Meanwhile, the company did mention to increase the sales price by 10% effective on 20 Dec 2016. By that time, the company's orders backlog was 2 months, meaning that the customer order today will get the product ready to deliver after 2 months. So the 10% increase in sales price should be only will affect the revenue 2 months later which is Feb 2017. Although the increasing of the production capacity may affect the orders backlog, but i believe that in the current quarter report that didn't affected much.

Personally, i will hold it for now and wait for next quarter result. Current PE is a just too high. And should not expect too much in dividend since the company need money for the new factory
16/03/2017 12:07
Joblessrich Meng, very good write up. Thank you.
I will hold and add if price weakens
16/03/2017 12:52
Hui Xin Sim good understanding meng... 4.21 and above is my target.. chill la.. this stock is steady... most importantly.. this company able to transfer the cost of increase resin to the customer... margin of profit so far so good.. and better than many of its peers.... i am holding since 2.98 hehe.. plan to keep for many years..
16/03/2017 13:00
stockmanmy meng is an IB analyst or works inside.
16/03/2017 13:21
stockmanmy this share will pay you.
16/03/2017 13:22
Meng im just an ordinary investor like you stockmanmy. i follow and read all related news from the company, you can read some from the comments above too.
16/03/2017 15:20
Joblessrich Meng,
Any relation to Lee Hock Meng ?
16/03/2017 18:36
Meng if I have any relationship with him, I think I won't have the stupid idea to sell all my scgm shares back in 2014.. I'm truly regret on my decision. Now I'm one of the long term share holder in the company won't simply let go of the share anymore.
16/03/2017 22:01
Joblessrich Thank you, Meng.
This is a good time for me to cummulate more.
I believe, this company will do well for the next few years.
17/03/2017 22:28
LAIZHENGLIT Did any huy know, the cost of resin is derived from U.S Dollar or MYR?
21/03/2017 04:27
RainT Usd
22/03/2017 12:48
Joblessrich Thank you to the bosses of SCGM.
28/03/2017 18:12
dfsbipohsch Plastics, packaging players to gain from capacity expansion
March 30, 2017, Thursday Adrian Lim, adrianlim@theborneopost.com

KUCHING: Plastics and packaging manufacturers are poised to benefit from their capacity expansion to enhance their revenue growth over the long-term.
The research arm of Kenanga Investment Bank Bhd (Kenanga Research) in a report yesterday said their expansions across the sector will continue to drive top-line growth in the long run.
Elaborating further, the research firm said one of the companies under its coverage, SLP Resources Bhd (SLP Resources) is expected to continue with its capacity expansion plan.
“The company is planning a new manufacturing facility to increase capacity by 58 per cent to 38,000 metric tonne (MT) by financial year 2018 (FY18) and targeting to penetrate the Chinese market in the future,” it explained in a note.
Meanwhile, another packaging company SCGM Bhd (SCGM) is renting a 20,000 square feet (sqft) facility in Kulai, Johor to house two new extrusion machines, thus increasing the company’s capacity production by 44 per cent to 36,000 MT per year in financial year 2017 (FY17) ending April 2017.
The company’s longer-term expansion plans include a new plant targeted for completion in FY19 ending April 2019 which will boost production capacity by an additional 74 per cent to 62,600 MT per year.
Furthermore, Scientex Bhd (Scientex) continued to ramp up its operations with additional capacity production at its Rawang plant and Ipoh plant by the second half of financial year 2017 (2HFY17) ending July 2017.
Scientex has also invested in a new plant in the US due in the second half of 2018 (2H18) to boost the group’s capacity and sales.
“Another company, Thong Guan Industries Bhd (Thong Guan) is constantly investing in capacity expansion and research and development (R&D) to improve sales and profit margins on existing products as well as revamping its customer base to target more multinational corporations (MNCs),” it added.
“As a result, the continued expansions by plastics and packaging manufacturers should ensure their long-term earnings growth beyond FY18.”
For the plastics and packaging manufacturers financial results for FY17 and FY18, the research firm expects strong earnings growth of 25 per cent and 33 per cent for SLP Resources, 26 per cent and 29 per cent for SCGM, 18 per cent and 19 per cent for Scientex and 12 per cent and 14 per cent for Thong Guan.
Owing to the steady expansion plans backed by strong demand for plastic products, Kenanga Research believed the plastics and packaging manufacturers are going to register strong earnings growth in the future supported by more sales from increased production.
Besides that, the research firm maintained its bullish outlook on the sector due to favourable macroeconomic fundamentals.
“The plastics and packaging sector will continue to remain resilient in the near term driven by resilient demand, allowing plastic packagers under its monitoring to embark on robust capacity expansion over the next one to two years, and product innovation, translating to strong double-digit earnings growth in FY17-18,” it said.
The prospects of the sector remain strong supported by the weak ringgit environment and low resin cost which it has accounted for in its earnings estimates for plastics and packaging manufacturers under its coverage, allowing the sector to thrive on positive market sentiment.

31/03/2017 11:05
Billionaire_Dreamer TQ, SCGM!!!!!! Keep Going Up!!!!
06/04/2017 23:08
stockmanmy This I am looking at $ 6 to $8 by year end.
06/04/2017 23:10
stockmanmy My cost is below $ 3.
06/04/2017 23:11
Billionaire_Dreamer i bought 2.89
06/04/2017 23:16
Joblessrich When will the other states ban the Styrofoam lunch boxes ?
It will drive the company share higher.... cheers
12/04/2017 21:43
stockmanmy looking at $6 to $8 by then.
12/04/2017 22:07
njue76 1 Jun 17...Perak start banned polystrine
17/04/2017 20:03
Joblessrich @njue76. Thank you very much
17/04/2017 22:05


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